PayPal buys Zong

PayPal has agreed the purchase of Zong, the mobile payments company, for $240m (€168m £150m $240m ¥19.4bn Y1,552m). When users with Zong wish to pay on a web site they press the company's button and enter their mobile number. A secure PIN code is sent by text which they then enter on the web site. They have deals with 250 carriers in 45 countries.

Importantly Zong also operate the Facebook credit system.

PayPal president Scott Thomson says: "Zong's expertise in carrier billing means that it has the potential to reach the more than 4 billion people around the world who have mobile phones - including people who don't have (or choose not to use) bank accounts or credit cards online. By combining Zong and PayPal, we believe we can offer more services to more customers, ultimately bringing even more value to how people pay and get paid."